Vietnam approves $136 billion power plan to expand renewables, nuclear energy

Vietnam’s revised National Power Development Plan (PDP8) strengthens renewable energy development. (Photo: iStock)

Vietnam officially approved a revised version of its National Power Development Plan (PDP8) on April 15, allocating $136.3 billion by 2030 to strengthen long-term energy security.

The updated roadmap not only boosts the share of renewable energy but also, for the first time, includes nuclear power. The country’s total installed capacity is set to increase by up to 236 GW, representing a 50% rise from the previous approved version.

Vietnam plans to make solar its top power source

To ensure power supply keeps pace with its double-digit economic growth ambitions, the government has amended PDP8 to make solar power the country’s leading energy source, overtaking coal.

By 2030, solar energy is expected to contribute over 25% of Vietnam’s electricity mix. In comparison, liquefied natural gas (LNG) and coal are projected to account for 12.3% and 16.9%, respectively.

Of note, Vietnam currently has no operational offshore wind farms. While earlier drafts of the plan suggested postponing offshore development, the final version reintroduces it, with initial deployment scheduled between 2030 and 2035. However, progress will depend on cost and feasibility. In the meantime, onshore and nearshore wind are expected to fill the supply gap.

Nuclear energy enters the picture

The amendment also formally incorporates nuclear power into Vietnam’s energy structure, with the first plants planned to come online between 2030 and 2035. Installed nuclear capacity is projected to reach 4 to 6.4 GW.

The plan places strong emphasis on renewable energy exports. Vietnam aims to export 400 MW of renewable electricity to Cambodia by 2030 and between 5 and 10 GW to countries like Singapore and Malaysia by 2035. Meanwhile, imports from China and Laos are also part of the strategy.

Despite concerns among major businesses over the unpredictability of Vietnam’s renewable energy incentives, the long-term direction is clear: the government aims to raise the share of non-hydro renewables to 28% to 36% by 2030, and up to 75% by 2050. At the same time, Vietnam plans to limit new coal plant construction and support the transition of existing facilities, reinforcing its commitment to a low-carbon future.

Source: Baochinhphu, Business Times, VnEconomy, Reuters, Vietanm.vn